Postmaster General John E. Potter will earn about $5.5 million in deferred compensation, retirement benefits and accrued annual leave when he leaves the U.S. Postal Service next month, according to financial statements. Potter also is eligible for up to two years of outplacement assistance and may continue receiving health-care insurance from USPS for up to one year after his departure.
“Prior to 2010, the Postal Service infrequently entered into financially immaterial transactions with certain highly-limited groups of eligible employees. Until 2009, in connection with the relocations of eligible employees, the Postal Service provided fully-secured mortgage loans to assist in the purchase of residential housing at the new location.
In 2005, the Postal Service made a 30 year secured loan to Susan Plonkey, who served as Acting President, Shipping and Mailing Services, from June 2, 2010 until August 13, 2010. At the time the loan was originally made, Ms. Plonkey served as Vice President, Service and Market Development. The initial loan amount was $686,815. The highest principal amount of the loan during fiscal year 2010 was $660,320. The amount of the loan outstanding as of September 30, 2010 is $653,006. During fiscal year 2010, Ms. Plonkey paid $7,314 in principal and $19,518 in interest on the loan. 60% of the loan bears interest at the rate of 5.125% and the other 40% of the loan does not bear interest. Instead, the Postal Service will share in 35% of the appreciation in the value of the residence upon sale, or the occurrence of certain other events resulting in the prepayment or acceleration of the loan.
The above loan was made pursuant to an established program designed to provide financial assistance to eligible employees that transfer to high cost-of-living areas, so that they are able to purchase a suitable home. This program specified certain loan parameters, including the maximum amount of any first or second mortgage, required down payments, and the maximum shared appreciation portion of the loan. The fixed portion of the loan is at market rates at the time the loan was made.”
Millionaire Postal Executives Are Underpaid, Consultant Says
By government standards, the U.S. Postal Service’s top executives, with their multimillion-dollar pension packages, are doing quite well. But their compensation is lagging further behind their counterparts in private industry, according to a USPS consultant.
“Towers Watson [a major management consulting firm] found that USPS executive base salaries are significantly below market when compared against published survey data of comparable jobs in the private sector,” says the Postal Service’s annual financial report, released today. “Moreover, the most recent assessment using 2010 data indicates that USPS executive salaries have continued to erode further over the past twelve months.”
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Paul Vogel President, Mailing and Shipping Services since August 2010. Served as private sector consultant focusing on postal industry strategy and international logistics from 2009 to August 2010. Managing Director of Global Business and Senior Vice President from 2006 to 2009. Vice President, Network Operations Management prior to 2006. Vogel is a retired Postal Exec rehired by USPS.
The following shall constitute the contract of employment between the United States Postal Service (“Postal Service”) and Paul E. Vogel (“Mr. Vogel”).
1. This contract is entered into under the authority of section 204 of Title 39 of the United States Code.
2. The Postal Service agrees to employ Mr. Vogel in the position of President, Shipping & Mailing Services at the Postal Service’s Headquarters located at
475 L’Enfant Plaza, S.W. , Washington , DC. Mr. Vogel’s employment in this position shall commence on August 14, 2010.
3. The Postal Service will compensate Mr. Vogel with a basic salary paid at the annual rate of $245,000, provided however, that as more fully provided in
paragraph 4 below, certain amounts will be withheld from this sum because Mr. Vogel will be a reemployed annuitant. In accordance with standard Postal
Service policy and practice, this basic salary rate may be reviewed and adjusted on an annual basis during each succeeding year in which this
Agreement remains effective. Unless required by law, the basic salary rate will not be lower than set forth here. In addition to a basic salary, Mr. Vogel
will be eligible to participate in the Pay for Performance Program, or any successor program, that is generally applicable to officers of the Postal
Service. Mr. Vogel’s participation in this program shall be according to the standard policies and practices governing the Pay for Performance Program,
or any successor program.
Vogel will get a lump sum of $95, 000 plus 25% of his salary each calendar year
Chief Financial Officer Joseph Corbett will get a $75, 000 bonus plus 25% of his salary
The Full Report and Vogel Agreement can be found here USPS 10-K Report 2010 (PDF)